Gold's story not yet over despite COVID-19 vaccine optimism – RBC

Analysts at the Royal Bank of Canada (RBC) believe that the bullish bias in gold still remains intact despite the optimism over COVID-19 vaccines.

Key quotes

“Gold's story is not over yet, even if there is a perceived "light at the end of the tunnel" from recent progress in COVID-19 vaccine development.”

“Recent fall in bullion prices is a reset of gold-related expectations during the pandemic, a repricing of stimulus expectations and a realignment of inflation fears.”

“Calls it a near-term overcorrection, adding that this reset may have helped old find a new equilibrium.”

“Gold's outlook can turn materially different if more uncertainty prevails over US election result.”

Related reads

• Gold's options market retains bullish bias despite sell-off in spot market
• Gold Price Forecast: XAU/USD faces a double whammy, $1850 support at risk?